On April 26, President Trump released a plan to reform the tax code. The one-page outline was distributed to media by Treasury Secretary Steven Mnuchin. The outline includes cutting the business tax rate to 15 percent, streamlining personal income tax brackets, reducing them from seven to three (10%, 25%, and 35%), and repealing the alternative minimum tax and estate tax (called the “death tax”). In order to partially offset the reduced business tax rate, there would be a one-time tax on business monies held overseas.
Reporters in the room were quick to ask questions about the outline, which was scant on detail. One White House official said, “We’ll get back to you with definitive answers on all these details.” The outline concluded with a pledge from the Trump Administration to hold listening sessions with stakeholders to collect input and to continue working with Congress to develop the details of a plan that “provides massive tax relief, creates jobs, and makes America more competitive.”
Following the announcement by the Trump Administration, House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), House Ways & Means Committee Chairman Kevin Brady (R-Texas), and Senate Finance Committee Chairman Orrin Hatch (R-Utah) issued the following joint statement:
“The principles outlined by the Trump Administration today will serve as critical guideposts for Congress and the Administration as we work together to overhaul the American tax system and ensure middle-class families and job creators are better positioned for the 21st century economy. Lower rates for individuals and families will allow them to keep more of their hard-earned money and empower them to invest more in their future. Getting tax rates down for American companies, big and small, will create new jobs and make the United States a more inviting place to do business. With an eye toward fairness and simplicity, we’re confident we can rebuild our tax code in a way that will grow our economy, better promote savings and investment, provide our job creators with a competitive advantage, and bring prosperity to all Americans.”
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